23/02/2024: This Week in Gold
Price Action
Gold Price:
Gold commenced the week with a resilient stance, opening at $2,013 an ounce on Monday, subsequently edging higher to close the day at $2,018. This upward movement, amounting to a 0.2% gain, was primarily propelled by US inflation data, which exceeded expectations, hinting at sustained price pressure in the market. Additionally, the diminished likelihood of imminent Federal Reserve rate cuts bolstered Gold’s allure, especially amidst the backdrop of a weakening US dollar observed since the prior week.
Tuesday witnessed a continuation of the positive momentum, with Gold opening at $2,018 and concluding at $2,024, marking a 0.3% gain. The decline in US Treasury yields, signalling caution among investors and adjusted expectations regarding Fed rate cuts amid the inflationary environment, provided further impetus to Gold prices. Moreover, market participants awaited the Federal Open Market Committee (FOMC) minutes for insights into the Fed’s policy stance, thus bolstering Gold’s position as a hedge against uncertainty.
On Wednesday, Gold maintained stability within the $2,020-$2,030 range, opening at $2,024 and closing marginally higher at $2,026, reflecting a modest 0.09% gain. Despite the release of the Fed’s latest monetary policy insights, which had minimal impact on US Treasury yields and the Dollar, the market anticipated potential rate adjustments in June, following the unveiling of the FOMC meeting minutes.
Thursday witnessed a slight downturn, as Gold prices moved marginally lower, opening at $2,026 and closing at $2,024, reflecting a 0.1% decline. This movement within the $2,020-$2,024 range underscored cautious investor sentiment, despite supportive US employment strength and PMI figures, which aligned with the Fed’s inclination to maintain current rate levels. Rising US Treasury yields further indicated market scepticism about immediate Fed rate cuts, thereby acting as a tailwind for the US Dollar.
As of Friday’s current trading session, Gold opened at $2,024 and continues to be influenced by market dynamics.
Silver Price:
Silver commenced the week with a robust opening at $23.42 an ounce on Monday, although it faced downward pressure throughout the day, ultimately closing at $22.99. This 1.8% decline signalled early volatility in the market.
Tuesday witnessed a modest recovery, with Silver opening at $22.99 and closing slightly higher at $23.01, reflecting a marginal 0.1% gain. Despite the uptick, Silver struggled to maintain significant momentum.
Wednesday brought further challenges for Silver as it opened at $23.01 and closed lower at $22.89, marking a 0.5% decline. This downward movement continued to test the resilience of Silver amidst fluctuating market conditions.
Thursday saw Silver prices opening at $22.89 and closing at $22.75, reflecting a 0.6% decline. This downward trajectory highlighted ongoing pressure on Silver, with investors exercising caution amid broader market uncertainties.
As of the current trading session on Friday, Silver opened at $22.75, with further updates pending as the trading day progresses. Market dynamics will continue to be closely monitored to provide comprehensive insights into Silver’s performance and trajectory.
